Departmental Income Statements For Year Ended December 31, 2017 Clock Mirror Sales Cost of goods sold Gross profit Direct expenses $150,000 $85,000 $235,000 73,500 52,700 126,200 76,500 32,300 108,800 2,100 550 Depreciation-Equipment 1.600 Sales salaries Advertising store supplies used 21,000 7,000 28,000 300 2,400 1,000 450 500 Total direct expenses 25,250 8,250 33,500 Allocated expenses 7,100 3,600 10,700 Rent expense Utilities expense Share of office department Total allocated expenses 2,700 2,200 4,900 5,500 17,500 12,000 expenses Total expensers Net income 21,800 11,300 33,100 47,050 19,550 66,600 29,450 $12,750 42,200 Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $51,000 in sales with a 85% goss profit margin and will require the following direct expenses: sales salaries, $8,000; advertising, $800; store supplies, $700, and equipment depreciation, $600. It will fit the nevw department into the current rented space by taking some square footage from the other two departments. When opened, the new painting department will fill one-fifth of the space presently used by the clock department and one- fourth used by the mirror department. Management does not predict any increase in utilities costs, which are allocated to the departments in proportion to occupied space (or rent expense). The company allocates office expenses to the operating departments in proportion to their sales. It expects the painting department to increase total office department expenses by $7.300. Since the painting department will bring new customers into the sto management expects sales in both the clock and mirror departments to increase by 11% No changes for those departments' gross profit percents or their direct expenses are expected except for store supplies used, which will increase in proportion to sales. Required: Prepare departmental income statements that show the company's predicted results of operations for calendar-year 2018 for the three operating (selling) departments and their combined totals. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount l Income S For Year Ended December 31, 2018 Direct expenses Total direct expenses Total allocated Total expenses